Household Appliance Manufacturing Industry Overview

Excerpt from Household Appliance Manufacturing Report

Companies in this industry manufacture large appliances such as stoves, ovens, refrigerators, and washers and dryers, and small appliances including vacuum cleaners, fans, humidifiers, and dehumidifiers, and toaster ovens. Major companies include US-based GE and Whirlpool (owner of the Maytag brand, among others), and Electrolux AB (Sweden), BSH Bosch (Germany), LG Electronics (South Korea), and Haier (China).

Competitive Landscape

Demand is driven by growth in consumer income and by home sales. The profitability of individual companies depends on efficient operations and effective marketing. Large companies have economies of scale in production, marketing, and distribution. Small companies can compete effectively by producing specialty products, subcontracting to the larger manufacturers, or producing name brand goods under contract. The industry is highly concentrated: the top 20 companies generate about 90 percent of revenue.

Products, Operations & Technology

Major product categories are refrigerators and freezers (about 20 percent of industry revenue); washers and dryers (20 percent); and ovens and ranges (20 percent). Other products include dishwashers, fans, microwave ovens, vacuum cleaners, water heaters, and other small and large electrical appliances.